Starling Group, the parent of Starling Bank and Engine by Starling, has agreed to acquire Ember, a UK FinTech specialising in digital tax and accounting software.
Ember, known for its HMRC-recognised platform, provides small businesses and sole traders with simplified bookkeeping and tax management tools. Starling Bank, which holds a 9% market share in UK small business banking, is one of the country’s leading digital challengers.
The acquisition aims to strengthen Starling Bank’s business offering by integrating Ember’s tax and bookkeeping software directly into its banking app and online platform. The deal value has not been disclosed. Once complete, it will allow small businesses to manage transactions, bookkeeping and tax submissions in one place, supporting them ahead of the upcoming HMRC “Making Tax Digital” deadline in April 2026.
Starling Bank is a UK-based challenger bank that has expanded rapidly since launch, offering current accounts, business banking, and digital-first financial services. Its technology arm, Engine by Starling, provides its banking-as-a-service model overseas. Ember, founded in the UK, focuses on digital tax and bookkeeping solutions, and its platform is recognised by HMRC for compliance with digital tax reporting.
The integration of Ember’s software is expected by the end of 2025, giving SMEs more time to prepare for digital tax requirements. The move follows Starling’s wider suite of business tools, including Spaces, which allow funds to be allocated to specific purposes, Bills Manager for managing supplier payments, and Spending Intelligence, an AI-driven tool to track spending.
Currently, Ember provides services to customers of HSBC, Revolut, Barclays and Lloyds. However, once it becomes part of Starling, its software will be exclusive to Starling Bank customers from 2026. Ember’s accountancy advisory services will be discontinued as part of the transition. The deal remains subject to customary closing conditions.
Adeel Hyder, Starling Bank managing director of SME banking, said, “Ember’s platform is beautifully designed to simplify complex accounting tasks through a user-friendly interface. As Starling ramps up the roll-out of best-in-class solutions for small businesses, we will continue to build, partner or buy as best meets customers needs.”
Ember co-founders Daniel Hogan and Aaron Shaw said, “We created Ember to take the pain out of accounting for small businesses – to help people make faster, clearer financial decisions without the stress. Making Tax Digital has created a real call to action for SMEs and Ember provides the solution to this. Our deal with Starling Group will mean that we’re setting a new standard for how banking and accounting should work together — seamlessly integrated and refreshingly simple.”
Starling Group chief financial officer Declan Ferguson said, “We are a natural fintech consolidator, so targeted acquisitions like Ember will form a key part of our strategy as we continue to develop Starling Bank in the UK and Engine by Starling overseas. Just as Fleet Mortgages has flourished since we bought it in 2021, I’m confident that Ember’s best-in-class tools will become a fantastic addition to Starling Bank’s offering.”
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